Precision Drilling (TSX:PD) Beneish M-Score : -2.65 (As of May. 04, 2024)

View and export this data going back to 1988. Start your Free Trial

What is Precision Drilling Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.65 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Precision Drilling's Beneish M-Score or its related term are showing as below:

TSX:PD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.61 Med: -2.85 Max: -1.98
Current: -2.65

During the past 13 years, the highest Beneish M-Score of Precision Drilling was -1.98. The lowest was -3.61. And the median was -2.85.

Precision Drilling Beneish M-Score Historical Data

The historical data trend for Precision Drilling's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Precision Drilling Beneish M-Score Chart

Precision Drilling Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-3.30

-3.32

-2.84

-2.05

-2.33

Precision Drilling Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.23	-2.38	-2.91	-2.33	-2.65

Competitive Comparison of Precision Drilling's Beneish M-Score

For the Oil & Gas Drilling subindustry, Precision Drilling's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Precision Drilling's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Precision Drilling's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Precision Drilling's Beneish M-Score falls into.

Precision Drilling Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Precision Drilling for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9467

0.528 * 0.7292

0.404 * 2.211

0.892 * 1.0453

0.115 * 0.9617

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.03

4.679 * -0.116977

0.327 * 0.8369

-2.65

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was C$433 Mil.
Revenue was 527.788 + 506.871 + 446.754 + 425.622 = C$1,907 Mil.
Gross Profit was 449.575 + 428.137 + 85.56 + 351.534 = C$1,315 Mil.
Total Current Assets was C$500 Mil.
Total Assets was C$2,997 Mil.
Property, Plant and Equipment(Net PPE) was C$2,415 Mil.
Depreciation, Depletion and Amortization(DDA) was C$304 Mil.
Selling, General, & Admin. Expense(SGA) was C$152 Mil.
Total Current Liabilities was C$292 Mil.
Long-Term Debt & Capital Lease Obligation was C$993 Mil.
Net Income was 36.516 + 146.722 + 19.792 + 26.9 = C$230 Mil.
Non Operating Income was 3.071 + 34.682 + 5.925 + -0.912 = C$43 Mil.
Cash Flow from Operations was 65.543 + 170.255 + 88.5 + 213.46 = C$538 Mil.

Total Receivables was C$437 Mil.
Revenue was 558.607 + 510.504 + 429.335 + 326.016 = C$1,824 Mil.
Gross Profit was 487.064 + 98.924 + 75.019 + 256.259 = C$917 Mil.
Total Current Assets was C$515 Mil.
Total Assets was C$2,891 Mil.
Property, Plant and Equipment(Net PPE) was C$2,340 Mil.
Depreciation, Depletion and Amortization(DDA) was C$282 Mil.
Selling, General, & Admin. Expense(SGA) was C$141 Mil.
Total Current Liabilities was C$267 Mil.
Long-Term Debt & Capital Lease Obligation was C$1,214 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(432.674 / 1907.035)	/	(437.258 / 1824.462)
	=	0.226883	/	0.239664
	=	0.9467

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(917.266 / 1824.462)	/	(1314.806 / 1907.035)
	=	0.50276	/	0.68945
	=	0.7292

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (499.64 + 2415.039) / 2997.126)	/	(1 - (515.439 + 2339.985) / 2891.399)
	=	0.027509	/	0.012442
	=	2.211

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	1907.035	/	1824.462
	=	1.0453

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(282.121 / (282.121 + 2339.985))	/	(304.227 / (304.227 + 2415.039))
	=	0.107593	/	0.111878
	=	0.9617

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(151.8 / 1907.035)	/	(140.999 / 1824.462)
	=	0.0796	/	0.077283
	=	1.03

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((992.884 + 291.533) / 2997.126)	/	((1214.069 + 266.591) / 2891.399)
	=	0.42855	/	0.512091
	=	0.8369

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(229.93 - 42.766	-	537.758)	/	2997.126
	=	-0.116977

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Precision Drilling has a M-score of -2.65 suggests that the company is unlikely to be a manipulator.

Precision Drilling Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Precision Drilling's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Precision Drilling (TSX:PD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Precision Drilling Corp (TSX:PD) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

PDS:USA

Address

150 6th Avenue SW, Suite 4200, Calgary, AB, CAN, T2P3Y7

Website

https://www.precisiondrilling.com

Precision Drilling Corpd is a provider of contract drilling and completion and production services to oil and natural gas exploration and production companies in Canada, the United States and certain international locations. Contract Drilling Services include drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment. Completion and Production Services include service rigs, oilfield equipment rental, and camp and catering services.